Calif. Appeals Court Nixes Carmax OT Action

Law360, New York (May 23, 2011, 4:48 PM EDT) -- A California state appeals court on Friday upheld the dismissal of a Carmax Inc. sales consultant's putative overtime class action, ruling that wages based on the number of items sold rather than their value could be considered commissions under state law.

The appeals court found that the Los Angeles Superior Court had correctly nixed Leena Areso's lawsuit against the used car retailer, finding she and other sales consultants qualified for the commissioned sales exemption from the overtime pay requirement of California's labor laws.